GRADUATE UNEMPLOYMENT RATE AND SOCIO-ECONOMIC EFFECT IN NIGERIA.

ABSTRACT This study examined the socio-economic effect of graduate unemployment in Anambra state. The objective of this study amongst many is to determine the significant relationship between high population growth of graduates and graduate unemployment and to investigate if low quality of graduates has resulted in graduate unemployment in Anambra state. Graduate unemployment, or educated unemployment, is unemployment among people with an academic degree. In an attempt to look into the problems, several literatures, studies and works were reviewed. Sample survey method was used in carrying out the research. A sample of 156 was selected from the population using simple random and stratified sampling method. Data were collected from both primary and secondary sources and presented in tables and analysed using percentage and frequencies. Hypotheses were formulated and tested using Chi square test method. It was discovered during the research exercise that that graduate unemployment has led to socio economic effects in the state. ie, most of the electoral violence and crime activities are perpetuated by graduates who could not find meaningful employment opportunities. It also showed that, increase in population of graduates is a major cause of unemployment. Following the above findings, the researcher has recommended that Enough funds should be made out as loans to be granted to graduates to start up small scale business which will serve as a form of employment to them, also Government through its regulatory agencies should check the rate at which  higher institutions are established every day, they should make sure that these institutions meet the minimum requirements required to operate, to reduce the number of low quality graduates in Anambra state.

CHAPTER ONE

• Background to the study

The level of unemployment is a mirror image of the state of a nation’s economy. Unemployment is the most exigent question facing policy makers and governments in recent times.  Lack of gainful employment ranked high in the list of socio-political problems confronting Nigeria at present.

In Nigeria, over-dependence of the economy on oil brought a boom in the 1970s while economic recession set in since 1981.  The recession has since had a very significant implication for the utilization of the country’s human resources, leading to high level of unemployment.  The problem has aggravated in the nation to the extent that many university graduates could not secure jobs, let alone school leavers.According to the Federal Office of Statistics survey carried out in 1984, graduates from tertiary institutions formed 3.8% of the unemployed persons for urban areas, this rose to 9.9%, 16.5% and 20.8% in 1995, 1996 and 1998 respectively, and currently in 2015 the number of unemployed persons according to the National Bureau of Statistics (2015) stands at 23.9%.  Information from the survey also shows that out of the present output from the educational system entering the labor market as at 1996 which was 2.8 million, only 0.3 million were absorbed into the labor market as at 2014 the number stood at 3.2 million with about 0.7 million being absorbed into the market.The problem seems to be two-fold showing both demand and supply side.  On the demand side, not only are there inadequate jobs for graduates but also the increasing decline in quality of education and training, thus making many graduates unemployed.  On the supply side, the inability of the government to adequately finance the nation’s educational enterprise has led to deteriorating infrastructural facilities and discouraging personal emoluments for teachers.

Nigeria’s Gross Domestic Product (GDP) growth rate, according to the National Planning Commission, (NPC, 2014) is estimated at 6.21% percent. The country’s population growth rate is 2.5 percent (National population commission, 2014) while high level of infrastructure deficits and limited employment growth are major constraints to socioeconomic development of Nigeriaaccording to Daily sun (2014) There has not been any significant improvement in the standard of living of about 70 percent of Nigeria’s population for more than a decade due to these constraints. The Nigerian economy is growing without appreciable employment opportunities for its teeming population, which has serious socio-economic consequences. The growth in crude oil revenue in Nigeria is accompanied by relatively limited employment growth, and deteriorating education standard. Graduates are intelligent and creative people with the ability to think critically (Gareth, 2011), and who compete for job in the domestic and global labor market places. Graduate unemployment imposes socio-economic costs; it is a waste of manpower resources, the investment in education and training is unused. This study defines graduate unemployment to include graduates of universities and polytechnics who are capable and willing to work but could not find a job or are discriminated for lack of experience. In this category also includes graduates who have never worked, those who have lost their jobs and seeking re-entry into the work force, and those who are underemployed or under disguised unemployment. They constitute about 60% of the Nigeria labor supply market. They belong to the “active poor”; active because of the immense youthful energies at their disposal, and are poor because they are either jobless or have jobs that pay less than is adequate for decent living (Uwem and Ndem, 2012).

Many of them live on less than $2 dollar a day (CIA world fact, 2014). They are forced by the circumstances to work under poor, insecure and precarious conditions in the informal economy. Many studies have focused on unemployment (Dabalen and Adekoka, 2000), youth unemployment (Uwemand Ndem, 2012), higher education and the demand for manpower (Ugwonah and Omeje, 1998), Labor market distortions, (Godwin and Johnson, 2012). This study singles out the graduate unemployment in Nigeria for critical analysis and emphasis on the socio-economic implications. Studies such as Folayan (1979), Fajana (2000), Diejomaoh (1979) shows that unemployment in Nigeria was not a serious problem before and after the civil war (1967-1970). What was noticeable as at then was a temporarily gap between searching for job by graduates and processing job applications by employers. Medical doctors, engineers, lawyers, economists, accountants, lecturers etc were in short supply. There was shortage of skilled manpower.

Expatriates were taken to fill some technical and professional jobs, (Civil Service Report, 1981; 1982). However, the trend has changed greatly from the late 1970s till date with the establishment of private universities, more federal universities, and polytechnics to satisfy the nation’s education aspirations. Adebayo (2014) opined that the numbers of universities and polytechnics have grossly increased to its current number of 107 universities in 2012, and also the Polytechnics to 92, and their curriculum expanded. However, the quality of graduates still needs to be restored and even improved from what it used to be. There is a decrease in production and the resulting output in the economy. Consequently, there is the need for strong institutional, organizational and economic structures to complement Nigeria’s rich natural resources. The enrollment and turn-out of graduates have exploded annually without corresponding changes in the structure of the Nigerian economy. Explosion in the number of higher institutions and the turn-out of graduates is not peculiar to Nigeria.Globally, higher education grewmassively, but uneven in most countries of the world throughout the 20th century. Rapid growth in the 1920s was followed by a decade of stagnation in the 1930s. Growth resumed after the Second World War and accelerated in the 1960s and early 1970s. There was a decade and a half of stagnation in the late 1970s, and 1980s, followed by more fast growth in the 1990s and the early of the 21st century. High growth rates in higher education result in rapidly increasing number of graduates trying to find jobs in economies that are unable to offer them, resulting in a cyclical fluctuation in labor demand compared to labor supply. Private higher education sector is expanding most rapidly in Latin America and Asia, such as in Mexico, Brazil, Chile, Indonesia and Malaysia. In Russia, there were about 450 private universities in 2010, compared to effectively none in 1990. In Poland, in 1990, there were 112 higher education institutions, nearly all public, but in 2010, these were supplemented by 195 private institutions, (Gareth, 2011). OECD figures show that in most of the world’s wealthy countries, the percentage of the population undertaking higher education has grown by 20% in the present century. In developing countries and emerging economies, the growth has been even faster. In China for instance, by 2007, total enrolment at higher education has risen to as high as 25 million, 3.5 times higher than in 1997 (Wu and Zheng, 2008). China has the largest education system in the world, and it is also experiencing high rates of graduate unemployment (Douglas, 2010; Zhou and Lin, 2009). Figures released by the manpower ministry in Indonesia show some 1.15 million unemployed graduates nationwide, too many graduates emerge without marketable skills (Jardine, 2009). Graduate unemployment is also linked to the state of the world economy.The general global employment situation is hard, especially following the economic and financial crisis from 2008. The prospect of unemployment looms everywhere, in America, Europe, Asia, Africa etc. The unemployed are not able to take care of themselves and their families. Unemployment, low productivity, poverty and outmigration of labor are mounting pressures, working for the promotion of rural development. Rural unemployment has become an urban problem. Apart from representing a colossal waste of the country’s manpower resources, unemployment generates welfare loss in terms of lower output thereby leading to lower income and wellbeing (Akinboyo, 1987; Raheem, 1993). For every graduate, finding a decent job is a milestone towards self-reliance, and contributing to poverty reduction, social stability and sustainable development. One would have assumed that graduates stand a better chance to be gainfully employed than people with secondary school education. However, the growing rate of graduate unemployment puts a big question mark on the economy and the education system.

• Statement of the problem

Nigeria is the largest Black African country in the world. The country is equally rich in human and material resources. Unfortunately, graduate Unemployment in Nigeria after 53 years of political independence is said to be the highest, this has made life difficult especially among the youth with enormous consequences. This fact has been acknowledged by PresidentGoodluck Jonathan when he said “The population of our young people is high. If we are unable to provide jobs for these young people, the country could face serious problems” (Daily Trust, 2013:10). This clearly shows how disastrous unemployment is in a country because it has been on the increase since 2006.According to National Bureau of statistics, as quoted by Olaiya, (2013:28), “unemployment rates were 12.3% in 2006, 12.7% in 2007, 14.9% in 2008, 19.7% in 2009, 21.1% in 2010”. And ever since then has maintained a steady trend over the years. Currently in 2015, the unemployment rate stands at 23.9% (National Bureau of Statistics, 2015). There is no doubt that the issue of graduate unemployment has lead to a number of problems that has negative impact on the sustainable development of Nigeria directly or indirectlywith particular attention in Anambra state. Thereis also the problem of Nigeria exporting far more skilled labor and trained intelligentsia due to lack of employment opportunities, and it is not healthy for self-reliance and socio-economic development. Another problem is that of high turnover of graduates from our universities. This seems to have been due to the rapid population growth of higher institutions in the state which produces high number of graduates that is not commensurate with employment opportunities in the state.There is also the problem of producing half-baked graduates that are unemployable, due to they were not properly trained in the higher institutions as these institutions are usually poorly equipped to properly train these graduates to be employable. These problems and many more are inherent in Anambra state, where there is visibly high rate of graduate unemployment. Furthermore, the state government has failed to place adequate measure and develop a proper framework such as skill acquisition and practical entrepreneurship programs building to address the increasing number of graduate unemployment.

• Research question

The research questions which served as a guide to the study are:

1. What are the socio economic effects of graduate unemployment in Anambra state?
2. Is there any significant relationship between high population growth of graduates and graduate unemployment?
3. Has low quality of graduates resulted in graduate unemployment in Anambra State
4. What effort and measures have the Government put in place to tackle graduate unemployment?
   • Objective of the study

The major objective of this study is to determine the socio-economic effect of graduate unemployment in Anambra state. Other specific objectives are:

1. To determine the significant relationship between high population growth of graduates and graduate unemployment
2. To investigate if low quality of graduates has resulted in graduate unemployment in Anambra state
3. To examineif there are measures put in place by government in tackling graduate unemployment.
   • Research hypothesis
4. Hi: Graduate unemployment has led to socio economic problems in Anambra state

Ho: Graduate unemployment has not led to socio economic problems in Anambra state.

2. Hi: There is significant relationship between high population growth of graduates and graduate unemployment.

Ho: There is no significant relationship between high population growth of graduates and graduate unemployment.

3. Hi: Low quality of graduates has resulted in graduate unemployment in Anambra state.

Ho: Low quality of graduates has not resulted in graduate unemployment in Anambra state.

• Significance of the study

Graduate unemployment now creates a serious problem in the society. It affects the political and socio-economic life of the society, so embarking on a research of this nature has always been to ultimately find out the causes and consequences of graduate unemployment and then finding solutions to the problems affecting the society. It is in this light that the researcher wishes to state strongly that the finding will be of immense importance and value to the government and all its agencies. The study will provide the blueprint for government policies towards the reduction of graduate unemployment in the society; it will not only be an educational study but also lay a good ground work for further exploration. Apart from contributing to the existing literature in this area, it is expected that the findings will generate further investigation into working out some theories in this area.

• Delimitation of study

This study is limited to the study of the socio-economic effect of graduate unemployment in Nigeria using Anambra state as an area of study with emphasis on the three industrial areas of Anambra-South, Anambra-North, and Anambra-Central which are Nnewi North, Onitsha North and Awka south local Government areas within the time frame of 2005-2015.

• Limitations of study

In the course of gathering information, many problems were encountered. Some were personal; finance was also a major hindrance to the course of this research. Attempts were made to solicit information from specific department within the organization but there was no permission to do so. If there had been necessary assistance from some of the departments much information could have been collected to enhance the work. Lack of financial resources restricted desires to seek information from several areas. All this constraints was dealt with to a large extent by collecting phone numbers from persons in the organization to avoid waste of finance on transport to and from the case study and anonymity was promised to respondents to questions and also to persons in charge of releasing certain information relevant to the work.

• Definition of terms

1. Graduate: Gareth (2011) sees graduates as intelligent and creative people with the ability to think critically and who compete for job in the domestic and global labour market places.
2. Unemployment:Udu and Agu(2005) defines unemployment as a situation which persons capable and willing to work are unable to find paid employment.
3. Employment: Oxford Advanced learners dictionary stated that employment is the state of being engaged in an activity.
4. Society:Offaway(1962) says that a society is a kind (or a part) of community whose member have become socially conscious of their mode of life and united by common set of aims and values.
5. Crime: Pease(1994) presents crime as comprising those actions which are deemed so damaging to the interest of the community that the state determines that it must take a direct role in identifying and acting against the criminal.
6. Poverty: Adam Smith defines poverty as the deprivation of the basic necessities of life. A state where individual lacks food, shelter and clothing’s.
7. Socio-economic: Gary .S. Becker sees socio economic as pertaining to social and economic factors.

• • Historical Background About the Study Areas

Nnewi North

Nnewi North – is a L.G.A in Anambra State, South – central Nigeria. Nnewi is the only town in Nnewi North L.G.A it has four villages (sub town) that make up the one-town local government which includes: Otolo Uruagu, Umudim, and Nnewi Ichi.

Nnewi falls within the tropical rainforest region of Nigeria. It is located east of the Niger River and about 22m south east of Onitsha in Anambra.

Trading and faming, they depend mainly in agriculture and commerce for their daily livelihood.

Nnewi is a home to many major indigenous manufacturing industries including Ibeto Group of companies, Cutix and Ads switch, coscharis group of company, Innoson, Chicason.

Awka South Local Government.

Awka South L.G.A is made up of nine towns namely: Amawbia, Awka, Ezinato, Isiagu, Mbaukwu, Nibo, Nise, Okpuno and Umuawulu.

In the past, the people of Awka South L.G.A were well known for blacksmithing. Today, they are respected among the Igbo people of Nigeria for their technical and business skills.

Awka is a town in Awka South L.G.A. it is the seat of government and has a lot of prominent people both home and abroad while Amawbia is home to the State home i.e Governors lodge and the state prisons. Nise have notable infrastructures like WAEC State head office and St. Paul University.

Isiagu Community is a town in Awka South L.G.A. it is one of the agricultural areas in the state with rich fertile soil for farming.

It is well known for its educational ( Nnamdi  Azikiwe University) and health ( COOUTH) sectors.

Onitsha North Local Government Area

Onitsha is the only town in Onitsha North L.G.A. It has one of the biggest markets in West-Africa known as the Main Market. The following are the industries found in Onitsha North LGA; Sabmiller Breweries, 7up Bottling Company, Amir Group, Pokisbros Group.

GET RELATED MATERIAL HERE